A central feature of the Scandinavian welfare state such as Denmark’s is its fine-mesh social-security safety net and the provision of a broad range of free or almost free public services. Such a system almost inevitably implies a high level of public outlays and considerable redistribution of income and consumption. The analysis of Danish expenditure policies in this chapter takes as a point of departurethat the current system enjoys broad support, at least in its fundamental design. Nonetheless, an assessment of expenditure policies cannot escape dealing with issues seen by many as basic features of the welfare state. However, the principal issue faced here is not whether the level of public spending is appropriate, but whether adequate policies are in place to encourage a high level of efficiency and ensure overall spending control.